Century Plyboards (india) Ltd. · NSE:CENTURYPLY
Century Plyboards (india) — Investor Presentation (August 2014)
30 slides from Century Plyboards (india)'s investor presentation, August 2014
Slide 1: Multi-ply
Multi-ply Century Plyboards (India) Limited INVESTOR PRESENTATION August, 2014
Slide 2: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Century Plyboards (I) Ltd. (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any se
Slide 3: Contents
Contents BUSINESS OVERVIEW 4 PLYWOOD 11 LAMINATES 15 CONTAINER FREIGHT STATIONS 16 FINANCIALS 22 3
Slide 4: Business Overview
Business Overview PLYWOOD LAMINATES India’s leading Plywood company Among top three laminate producers Pan- India: 6 Manufacturing facilities Fully integrated plant near Kolkata Strategically located across India, near Capacity – 4.8 Million Sheets Kolkata in East, near Kandla in West, near Focus on
Slide 5: Segment contribution in FY2014
Segment contribution in FY2014 Rs. Crores Revenue mix FY 2014 EBIDTA mix FY 2014 EBIT mix FY 2014 Revenue mix Q1FY15 EBIDTA mix Q1FY15 EBIT mix Q1FY15 Plywood 274.86 Laminates 62.73 Plywood 39.43 Laminates 6.7 Plywood 34.76 Laminates 3.69 Logistics 14.89 Others 8.37 Logistics 5.88 Others (0.11) Logi
Slide 6: Promoters
PROMOTERS Sajjan Bhajanka, Executive Chairman Sanjay Agarwal ,CEO and Managing Director Graduate with 45 years of industry experience Graduate with 30 years of industry experience Responsible for the overall strategic direction Responsible for Sales, Marketing, IT and HR and Production, Fina
Slide 7: Key Management Team
Key Management Team Ajay Baldawa, Executive Director (Technical) Arun Julasaria , CFO M.Tech from IIT with 30 years of plywood FCA, FCS with varied experience over 25 years industry experience. Responsible for Finance, Accounts, Audit Responsible for all technical matters Treasury, Corporate
Slide 8: Centuryply - Brand
Centuryply - Brand Strong Brand value 25 Year Old – Competitive survivor - India’s leading plywood brand Top 100 most valuable brands of India as per 4P Survey 2010 One of Nation’s top 200 Power Brands – ‘Legacy’, ‘Recall’ & ‘Trust’ CenturyPly has been adorned as ‘Master Brand’ by the CMO co
Slide 9: More about Centuryply
More about Centuryply 32 Year Old Company promoted by first generation promoters Maiden IPO in 1997, Till date total fund raised 13.46 Crore (incl 75% promoters) Uninterrupted Dividend and more than 8000 % return to Investors TECHNOLOGY SAVVY- Runs on SAP ERP ASSET LIGHT MODEL- Capex Turnover Ratio
Slide 10: Pan India Presence (Robust network)
Pan India Presence (Robust network) Manufacturing Units Ply* 6 Ply Myanmar# 1 Laminates 1 CFS 2 *Includes one subsidiary (51%) unit # Ply Myanmar is 100% subsidiary Branch Offices Over 30 Regional Dist Centre 5 Distribution Network* Total* > 10,000 Direct > 1,500 *Includes dealers, sub-dealers, reta
Slide 11: Indian Plywood Industry (Overview 1)
Indian Plywood Industry (Overview 1) Indian Plywood & Panel Industry is ~ Rs. 15,000 Crs. Share of organized sector is 30% 50% of organized market controlled by two national players Century and Green. At national level virtual oligopoly. Balance 50% are region based confined to one or two stat
Slide 12: Indian Plywood Industry (Overview 2)
Indian Plywood Industry (Overview 2) Faster Organized Sector growth Organized sector share has grown from 10% ( decade back) to 30% Organized sector suffered due to high Excise Duty of 16% which was reduced to 8% in 2006 and now pegged at 12% With migration from Sales Tax to VAT system, the cr
Slide 13: Indian Plywood Industry (Challenges and opportunities)
Indian Plywood Industry(Challenges and opportunities) Industry Challenges Raw Material Linkages Foreign Exchange Volatility Labour intensive Unorganized sector dominance Environmental Regulations Industry Opportunities Potential Housing and Infrastructure boom GST Stable Government,
Slide 14: Indian Plywood Industry (Our Positioning)
Indian Plywood Industry (Our Positioning) Century Ply position Pan India presence with strategic locations of six manufacturing facilities across all parts of India (North, South, East, West, North East, and Central) Robust pan India distribution network of 30 branches with adequate warehousing
Slide 15: Laminates
Laminates Industry Scenario Laminates are used to provide an aesthetic look to plywood Business synergy - Plywood and Laminates have same customer base Growth drivers for Laminate are same as Plywood Laminates market is organized and semi organized Raw Material for Laminates are paper and
Slide 16: Container Freight Stations (CFS)
Container Freight Stations (CFS) Kolkata Heavily congested due to consistent traffic growth Port Container Traffic at Kolkata expected to grow at a CAGR of 25% First Privately owned CFS of Eastern India (at Kolkata Port) Two CFS covering 1 Lac Square meter area Complete new facilities with state-of-
Slide 17: Furniture and Modular Kitchen
Others ( Mainly Home Improvement) Exploring new but related business ideas Entered Furniture trading business in 2012 with two pilot retail FURNITURE AND MODULAR KITCHEN showrooms at Kolkata and Bangalore Based on 2 years experience and research decided to launch modular kitchen made of waterproof p
Slide 18: Great Indian Opportunity
Great Indian Opportunity Stable Government Strong Leadership Fresh Optimism Stronger and Stable Rupee Housing Sector push Affordable housing loan High apartment inventory to be progressively liquidated GST implementation optimism Focus on Infrastructure and Development Increased hospitality, healthc
Slide 19: Game Changer at Century
Game Changer at Century Adequate Raw Material Security. First mover advantage at Myanmar (Unaffected by timber ban) Stable and strengthening rupee to result in lower raw material cost and forex advantages Beneficiary of Government’s housing and infrastructure thirst Targeting 25% YOY revenue growth
Slide 20: Future Horizons and Vision 2020
Future Horizons and Vision 2020 Financial Targets Minimum YOY growth of 25% ( Rs. 5000 Crore by 2020) Multi-ply Improving profitability, EBIDTA, ROE, ROCE ( Rs. 500 Crore NP by 2020) Raw material linkages Raw material availability & cost - Crucial for long term sustainability of business Eva
Slide 21: Competitive advantage summary
Competitive advantage summary Well established Brand Retail Driven Business Consumer Choice Pan India distribution net work Established market leadership Investing in Sales Competencies Quality Products First Generation Promoters Complete range of Products Professionally Managed
Slide 22: Financial Appendices
Financial Appendices Robust Growth Record – 10 Years CAGR Multi-ply Balance Sheet Profit and Loss Statement Segment Financials Capital Evolution Return to Investors 22
Slide 23: Robust Growth Record
ROBUST GROWTH RECORD PARTICULARS 2003-04 2013-14 CAGR % TOTAL INCOME 124.55 1293.45 26% EBIDTA 11.27 157.66 30% Cash Profit 10.45 102.55 26% EBIT 9.84 124.42 29% PBT 9.01 69.3 23% PAT 7.31 66.94 25% TOTAL FIXED ASSETS 22.79 230.73 26% TOTAL CAPITAL EMPLOYED 54.75 641.99 28% LONG TERM DEBT 27.75 119.
Slide 24: Balance Sheet
Balance Sheet Rs. Crores 2013 2014 Q1FY15 Net Worth (Including Share Capital -22.25 Cr) 249.67 291.41 315.61 Long Term Debt 155.66 117.98 118.24 Short Term Debt (Bank CC) 10.48 113.98 67.37 Total Liabilities 415.81 523.37 501.22 Fixed Assets 221.68 230.73 229.84 Investments 15.62 37.89 37.89 Current
Slide 25: Profit & Loss Summary
Profit & Loss Summary Rs. Crores FY 12-13 FY 13-14 Q1 FY 14 Q1 FY 15 Net Sales 1,124.33 1,276.04 282.26 360.85 Other Operating Income 6.82 7.93 1.44 1.89 Expenditure (incl Forex Loss/(Gain) 1,020.99 1,119.03 244.23 317.36 EBITDA (Before Forex Fluctuation) 110.16 164.94 39.47 45.38 EBITDA Margin 9.80
Slide 26: Segment Comparison YOY
Segment Comparison YOY PLYWOOD LAMINATES CFS OTHERS TOTAL 2013-14 2012-13 2013-14 2012-13 2013-14 2012-13 2013-14 2012-13 2013-14 2012-13 Revenue Net Sales 964.84 826.12 236.69 210.86 52.22 55.85 22.29 31.50 1,276.04 1,124.33 Operating Income 1.40 1.93 5.78 4.19 0.74 0.69 0.01 0.01 7.93 6.82 Sub Tot
Slide 27: Segment Comparison QOQ
Segment Comparison QOQ PLYWOOD LAMINATES CFS OTHERS TOTAL Q1 FY 15 Q1 FY 14 Q1 FY 15 Q1 FY 14 Q1 FY 15 Q1 FY 14 Q1 FY 15 Q1 FY 14 Q1 FY 15 Q1 FY 14 Revenue Net Sales 274.86 203.49 62.73 58.32 14.89 14.00 8.37 6.45 360.85 282.26 Operating Income 0.31 0.38 1.39 0.94 0.19 0.12 - - 1.89 1.44 Sub TotaL 2
Slide 28: Capital Evolution
CAPITAL EVOLUTION Only 13.46 Crore ( including 75% from Promoters) capital infusion 28
Slide 29: Return to Investors (Since IPO)
Return to Investors (Since IPO) Date Detail of Events FV (Rs) No Issue Rs. Total Rs. DIVIDEND HISTORY 27.05.1997 The IPO at a Premium of Rs.10 10 10 20 200 Year % 1 2013-14 100% 27.05.2004 Right Issue 40% at (Rs. 30 Premium) 10 4 40 160 2 2012-13 25% 30.07.2004 Bonus 1:2 ratio 10 7 0 0 3 2011-12 100
Slide 30: For further information, please contact
For further information, please contact: Century Plyboards (I) Ltd. Mr. Arun Julasaria, CFO +919830292192 +913330252517 arun@centuryply.com www.centuryply.com 30
Century Plyboards (India) — Investor Presentation (August 2014) on 6ix